Deregulation of electricity prices, what's in it for you?

“Get active, get online, and get a better deal,” urges Member for Bega Andrew Constance as the removal of retail electricity price regulation comes into effect today.

“Get active, get online, and get a better deal,” urges Member for Bega Andrew Constance as the removal of retail electricity price regulation comes into effect today.

Now's the time to shop around for cheaper electricity prices, says member for Bega Andrew Constance.

“Get active, get online, and get a better deal,” urges Member for Bega Andrew Constance as the removal of retail electricity price regulation comes into effect today.

NSW households and businesses now stand to benefit from greater competition and choice in the state’s electricity market, he said.

“The Government’s decision, first announced on 7 April 2014, will fully empower NSW customers to take control of their electricity bills and place downward pressure on the cost of living,” Mr Constance said.

“Under this historic reform, customers will be placed firmly in the driving seat and will reap the rewards as competition brings more retailers into NSW that will offer better deals to secure and retain their business.”

Mr Constance said around 65 per cent of NSW households and small businesses, or around 2 million customers, have already made the switch from a regulated electricity contract to a competitive market contract in recent years.

“Now the remaining 35 per cent of customers can choose what is best for them and take control of their electricity bills.

“From today those customers who have not switched over to a competitive market deal will automatically be transferred to a ‘transitional tariff’.

“For most households on a transitional tariff their bill will now be 1.5 per cent lower in 2014/15 compared to the 2013/14 regulated price. However, many market offers may be even cheaper.”

“This means that for the first time in 15 years NSW electricity customers who were still on the regulated price before today will see a reduction on their bill.”

Mr Constance said the decision to deregulate the electricity market followed reports by the Independent Pricing and Regulatory Tribunal (IPART) and the Australian Energy Market Commission (AEMC) that the NSW electricity market is competitive and regulation is unnecessary. The AEMC reported that regulation may be inhibiting price competition.

“I urge households and small businesses to shop around for the best deal out there. Make a free comparison on the Australian Energy Regulator’s website at www.energymadeeasy.gov.au.